CTA study guide
CTA · Work through your exam, one topic at a time.
The CTA (Chartered Tax Adviser) is a professional tax qualification rather than an entry-level certificate. This page assumes the UK award made by the Chartered Institute of Taxation; the acronym is used by more than one body in different jurisdictions, so confirm which CTA you are sitting before you plan any study. The CTA study guide has 6 sections and about 2,463 words.
01Taxation of Individuals: Income Tax, Employment and Personal Reliefs
UK income tax is charged on total income for the tax year (6 April to 5 April). Compute statutory total income, deduct allowable reliefs (trading losses, qualifying loan interest), then apply the personal allowance.
373 words, about 2 min02Taxation of Businesses and Companies: Trading Income, Corporation Tax and Business Reliefs
Trading profit is tax-adjusted accounting profit: start with the accounts profit, add back disallowables (depreciation, entertaining, capital items), deduct capital allowances, then apply the loss rules (current year, carry back, carry forward, terminal loss). Since 2023/24 profits are taxed on a tax year basis , with 2023/24 as a transition year containing a catch-up charge that may be spread over five years.
332 words, about 2 min03Capital Taxes, Trusts and Estates: CGT, IHT and Trust Taxation
CGT applies to chargeable disposals by chargeable persons. Take consideration, deduct allowable expenditure (acquisition, enhancement, incidental costs), apply reliefs (private residence relief, holdover, business asset disposal relief, rollover), deduct the annual exempt amount (3,000), then tax at the current 18% and 24% rates.
357 words, about 2 min04Indirect Taxes: VAT and Other Indirect Taxes
VAT is charged on supplies of goods and services by a taxable person in the course or furtherance of business. Output tax less input tax equals the amount payable, with the burden on the final consumer.
341 words, about 2 min05International and Cross-border Taxation
Individual residence is determined by the statutory residence test: automatic UK tests (183 days, only home, full-time work here), automatic overseas tests, then the sufficient ties test, which weighs UK days against connecting ties (family, accommodation, work, the 90-day tie, the country tie). Split-year treatment applies on arrival and departure.
339 words, about 2 min06Tax Administration, Ethics and Professional Standards
Individual returns are due by 31 January following the end of the tax year (31 October for paper). Payments on account are two instalments (31 January and 31 July), each half of the previous year liability, where the prior year balancing payment exceeded 1,000 and less than 80% was collected at source.
721 words, about 4 min